MagIndustries Corp MAAFF

Possible buyout?

[canadianpilgrim]

I'm looking for people's considered opinions regarding the possibility of a buyout of this stock, even a hostile takeover. Now that 52.% of MAA is being sold for $.70/share, I wonder if all those major shareholders who did deals around $2.70/share in prep for an IPO, are happy with this offer. The topside is going to be severely limited with this sellout.. A complete buyout at $1.00/share would cost slightly more than this majority stake. Is it possible some of the present stakeholders will go looking for a white knight with a better deal?

$280 million is really cheap for control of this company. MAA couldn't get equity financing when offering minority stakes. Now control of the company is for sale. The question isn't what price should we pay for cash for the project to proceed. It's what price should we get for giving up control. If you had a choice between the Chinese deal and a $1.00 buyout, which would you vote for?

I have an idle thought that maybe the 60 million new shares @ $.42 isn't to raise money (which doesn't make sense when you are going to get $280 million @ $.70/share) but maybe to raise votes to approve this deal which was already lined up.